Introduction
In a move to bolster revenue amid anticipated stagnation in smartphone sales, Apple is reportedly considering raising the price of its upcoming iPhone 15 Pro and Pro Max models, according to a recent report by Bloomberg. The tech giant aims to maintain its revenue levels by producing a comparable number of units to previous models while navigating challenges like inflation and lower consumer tech demand.
Ambitious Production Targets
According to insider sources cited by Bloomberg, Apple has set a target to manufacture approximately 85 million units of the iPhone 15 this year, just slightly below the 90 million iPhone 14 units requested from suppliers in the previous year. The company’s strategy revolves around maintaining high revenue figures despite potential market hurdles by increasing the price of its premium iPhone models, namely the iPhone 15 Pro and Pro Max.
Challenges and Setbacks
While Apple strives to meet its production targets, several hurdles stand in its way. The report mentions production issues related to display panels for the iPhone 15 Pro and Pro Max, potentially impacting the number of units available at the time of launch. Additionally, Apple faced disappointment during the previous year’s holiday season, which led to the scrapping of plans to increase iPhone 14 production by an additional 6 million units due to unmet demand.
Market Conditions and Projections
In a broader context, the smartphone market is projected to face a 3.2 percent decline in global shipments in 2023, as reported by IDC in May. However, analysts predict a recovery in the smartphone market starting the following year.
Price History and Potential Increases
Historically, iPhone Pro and Pro Max models have been introduced with starting prices of $999 and $1,099, respectively, since the launch of the iPhone 11 Pro in 2019. While specific details about the extent of the price increase remain undisclosed, industry experts, such as 9to5Mac, speculate that standard iPhone 15 and iPhone 15 Plus models will maintain pricing consistency with previous generational releases, with starting prices at $799 and $899, respectively.
Apple’s Confidence in Price Adjustments
Despite potential price hikes, Apple’s CEO Tim Cook expressed confidence during an earnings call in February, asserting that customers are willing to invest in the best they can afford when it comes to flagship iPhone offerings. Cook’s statement indicates that Apple believes the loyal customer base will continue to embrace the premium features and innovations of the iPhone 15 Pro and Pro Max, even with a higher price tag.
Conclusion
As the smartphone market faces challenges and uncertainties, Apple’s reported decision to increase the price of its iPhone 15 Pro and Pro Max models showcases the company’s commitment to maintaining its revenue streams. By aligning its premium offerings with consumer preferences and expectations, Apple aims to stay ahead in the competitive landscape, showcasing cutting-edge technology and user experience that continues to captivate its global audience.
